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3 years ago

3 investment theories

Business

2 answers:

Vera_Pavlovna [14]3 years ago

4 0

Answer:

1. The Accelerator Theory of Investment 2. The Internal Funds Theory of Investment 3. The Neoclassical Theory of Investment.

lara31 [8.8K]3 years ago

3 0

1. The Accelerator Theory of Investment 2. The Internal Funds Theory of Investment 3. The Neoclassical Theory of Investment.

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How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 39 years at an annual interest ra

Solnce55 [7]

Answer:

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to $A=P(!+\frac{r}{100})^n$

$1000000=500000(!+\frac{1.79}{100})^n$

$2=(1.0179)^n$

Taking log both side

$log2=nlog1.0179$

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So $1000000=500000(1+\frac{2.34}{100})^n$

$2=(1+\frac{2.34}{100})^n$

$2=1.0234^n$

taking log both side

log 2 = n log 1.0234

n×0.01 = 0.3010

n = 30.10 year

8 0

3 years ago

A firm has net income of $197,400, a return on assets of 8.4 percent, and a debt-equity ratio of .72. What is the return on equi

Karolina [17]

Answer:

C 14.45

Explanation:

Return on equity = .084 ×(1 + .72) = .1445, or 14.45 percent

8 0

3 years ago

The following information is provided for Sacks Company. Cash $ 12,000 Supplies 4,500 Prepaid rent 2,000 Salaries expense 4,500

MakcuM [25]

Answer:

The amount of total liabilities is $5,000

Explanation:

In this question, we apply the accounting equation which is shown below:

Total assets = Total liabilities + owner's equity

where,

Total assets = Cash + supplies + prepaid rent + equipment

= $12,000 + $4,500 + $2,000 + $65,000

= $83,500

Owner's equity = common stock + ending retained earning balance

where,

Ending retained earning balance = Beginning retained earning balance + net income - dividend paid

The net income = Service revenue - Miscellaneous expenses - salaries expense

= $30,000 - $20,000 - $4,500

= $5,500

Now put these values to the above formula

So, the ending retained earning balance would equal to

= $8,000 + $5,500 - $3,000

= $10,500

And, the owner equity = $68,000 + $10,500 = $78,500

So, the total liabilities would be

= $83,500 - $78,500

= $5,000

4 0

3 years ago

On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconver

Rzqust [24]

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

Cr Bonds payable 3,840,000

Cr Premium on bonds payable 138,240

Cr Additional paid in capital - warrants 15,360

5 0

3 years ago

A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity

TiliK225 [7]

Answer:

The production capacity the manufacturer should reserve for the last day = 206.00 units.

Explanation:

Normal production = 1000 X $ 10

Normal production = $ 10,000

Spot production = 1,000 X $ 15

Spot production = $ 15,000

p* = 15,000 - 10,000 / 15,000

p* = 0.33

Q = norminv(0.33,250,100)

The production capacity the manufacturer should reserve for the last day = 206.00 units

7 0

3 years ago